Palestinian Authority President Mahmoud Abbas shakes hands with U.S. President Barack Obama, on March 17, 2014. Photo: Screenshot.

An American official told Israeli political reporters on Tuesday that the Obama administration understands that there is no possibility a Palestinian state will be established by the end of President Barack Obama’s time in office, Israel’s NRG reported.

Despite this belief, the official made clear that Washington would not take the issue off its agenda, and would continue to promote the peace process during the remainder of Obama’s presidency.

The official said the White House is concerned over the stalemate between Israel and the Palestinian Authority, and pointed out that the nuclear deal with Iran had overshadowed the issue.

“You cannot set [the peace process] aside while you are dealing with the Iranian issue, because of demographics and because of what is happening in Gaza,” said the official, according to the report.

“There is no scenario where we would not deal with the Palestinian issue or not do something to push it forward in any case,” the official continued. “But we are realistic when it comes to this, that we will not reach an agreement during this administration. However, we must keep the issue in focus.”